Brokers only make money by closing deals—whether they’re right for you or not. Here’s how to avoid their fees and get the best funding for your business.
Why Most Business Owners Overpay for Loans
If you’re looking for a small business loan, you might assume a broker will help you find the best deal. But what brokers won’t tell you is that their entire business model depends on pushing loans, even when they aren’t the right fit for you.
Most brokers charge 8–12% (sometimes as high as 15%) in commissions, and they only get paid when you take a loan. These commissions are almost never disclosed and are hidden in the loan terms, meaning you could be paying thousands more without even realizing it.
Since brokers get paid based on deal size and type, they aren’t incentivized to get you the best deal—they’re incentivized to push whatever makes them the most money. That often means higher-cost financing, even when cheaper options are available.
? Want to see which lenders fit your business—without hidden fees? Chat with Diogenes to get recommendations now.
Find the right loan for your business. No middlemen. No fees.
Brokers Only Make Money by Closing Deals—Even the Bad Ones
A business loan broker isn’t your advisor—they’re a salesperson. And like any salesperson, they push what makes them money.
If all they have is a hammer, every business looks like a nail.
- They don’t care if you need a different type of financing.
- They don’t care if the loan could put your business at risk.
- Their only goal? Closing a deal that earns them the highest commission.
Example:
“Sarah came across an opportunity to open a second location for her successful smoothie bar in a highly desirable area. She needed to act fast—meaning banks were out. To build out, equip, staff, and secure the lease, she needed $250,000.
Thinking a broker would help her “secure the best deal,” she turned to one for guidance. The broker got her an offer from a highly reputable tech lender. But what Sarah didn’t know? That $250,000 loan had $25,000 of commissions baked in.
Her instincts told her better was possible. After discussing her situation with Diogenes, she applied directly with other fintech lenders and eliminated the $25,000 broker fee. That savings helped her open on time, on budget, and reach profitability in her second location much faster.”
Skip the broker fees. Find lenders that actually want to fund your business.
Want the Cheapest Business Loan? Start with a Bank or SBA Lender
Before you look at online lenders, know this:
✅ Banks and SBA lenders always offer the lowest-cost loans.
✅ If you qualify, this is your best option—period.
✅ Diogenes can recommend banks and SBA lenders that actually want to fund your business.
But brokers rarely recommend SBA or bank loans—even when they’re the best fit. Why? Because these loans don’t pay them big commissions. SBA loans take longer, require more paperwork, and brokers can’t bake in an extra 8-12% in hidden fees like they do with high-cost online loans. Instead of guiding you toward the cheapest funding, they’ll push what makes them the most money.
That’s why many business owners never even realize they qualify for low-cost financing—they’re being steered toward expensive alternatives.
Want to see if you’re a candidate for an SBA or bank loan? Chat with Diogenes now.
Find the right loan for your business. No middlemen. No fees.
Not a Candidate for Bank Financing or Need Something Fast?
If you don’t qualify for a bank loan or need funding in days instead of months, fintech lenders offer a faster alternative.
✅ Fintech lenders approve businesses based on revenue, not just credit.
✅ Revenue-based financing and lines of credit can keep your business moving.
✅ You can apply directly—without a broker taking a cut.
Find out which fintech lenders fit your business in minutes.
Best Business Loan Alternatives to Brokers
Instead of paying brokers 8–12% (or more), apply directly to lenders that offer transparent, direct financing. Here are your best options:
✅ Business Term Loans & Revenue-Based Financing
✔ Best for expansion, inventory, or general working capital
✔ Available as fixed-term loans or revenue-based repayment
✔ Top fintech lenders: Rapid Finance, Credibly, Mulligan Funding, Kapitus
✅ Business Lines of Credit
✔ Access funding as needed (no lump sum debt)
✔ Works best for managing cash flow & emergencies
✔ Top options: BlueVine, Fundbox, OnDeck
✅ Invoice Financing & Factoring
✔ Ideal for businesses with slow-paying invoices
✔ Get immediate cash flow without taking on new debt
✔ Top options: FundThrough, RTS Financial, altLINE
✅ Equipment Financing
✔ Best for buying vehicles, machinery, or specialized equipment
✔ Equipment itself serves as collateral (easier approvals)
✔ Top lenders: Crest Capital, Balboa Capital, CIT
Want to know which option fits your business? Chat with Diogenes to find the best match.
Find the right loan for your business. No middlemen. No fees.
Why Do Lenders Put Up With This Crap?
If brokers drive up costs and add no real value, why do lenders still work with them?
Brokers have actually convinced business owners their “expertise” gets lenders to compete for their business—driving down the cost of capital. It would be funny if it weren’t so sad and laughably untrue.
Lenders know that cutting out brokers would make deals simpler, cheaper, and faster, but they can’t always afford to be picky about where their next deal comes from. Brokers keep sending them deals, so they go along with the charade.
The irony? Cutting out the broker actually makes you a better credit risk. Without their 8-12% cut inflating your costs, your loan payments are lower, your cash flow is stronger, and lenders see you as a safer bet.
Final Thoughts: Don’t Let a Broker Push You Into the Wrong Loan
If you want the best funding deal, go direct to lenders instead of paying huge broker fees.
✅ If you qualify for a bank or SBA loan, that’s your best option.
✅ If you need funding fast, fintech lenders can help—without middlemen.
✅ Either way, Diogenes will point you to lenders that actually want to fund you.
Need help finding the best funding for your business? Start now and chat with Diogenes for lender recommendations.